Auction.com Announces Successful $2 Billion Online Auction of 305 Southeast Commercial Notes and Properties

IRVINE, Calif.--(BUSINESS WIRE)--Auction.com, the nation’s leading real estate auctioneer and loan sales advisor, announced today that it has achieved $453 million in sales—with over $600 million in Unpaid Principal Balances sold—in its recent online auction of Non-Performing Notes & Commercial REO Properties located throughout the Southeastern United States. The auction is its largest to date for commercial real estate assets.

“Our recovery rates for loans and REO assets are setting the bar for value.”

On behalf of its 10 institutional clients participating, Auction.com sold 187 assets, and garnered a Purchase Price to Reserve rate of 111 percent.

The largest asset offered in the auction was the Chattanooga-based, 823,014-square-foot Northgate Mall situated on 47 acres. The asset drew sizable interest on Auction.com with approximately 2,000 web hits.

“Our commercial auctions continue to attract the country’s largest institutional clients, and local retail buyers who return the properties to the community,” says Auction.com CEO Jeff Frieden. “Our recovery rates for loans and REO assets are setting the bar for value.”

The Non-Performing Notes & Commercial REO Properties were located in AL, FL, GA, KY, MD, MS, NC, TN and VA. Starting bids ranged from $500 to $10.5 million, and included multi-family, mobile home parks, retail, mixed-use, hotel, land, self-storage, office, industrial, and special-purpose assets.

Additional highlights from Auction.com’s $2 Billion auction of REO Properties and Notes are as follows:

Additional Overall Results:

• Average Purchase Price: $2.5 million
• Unique Asset Website Visits: 324,000

Commercial REO Properties:

• Assets Auctioned: 143
• Assets Sold: 94
• Total Purchase Price: $144 million
• Average Purchase Price: $1.5 million
• Purchase Price to Reserve: 107%
• Unique Asset Website Visits: 200,000

Commercial Notes:

• Assets Auctioned: 162
• Assets Sold: 93
• Total Purchase Price: $309 Million
• Average Purchase Price: $3.4 million
• Purchase Price to Reserve: 113%
• Unique Asset Website Visits: 124,000

The online auction for both commercial real estate and loans spanned several weeks, beginning on September 19, 2011 and concluding on October 6, 2011.

Note to Media: Auction.com respects the anonymity of its sellers and buyers. We do not disclose any information regarding their participation in our auctions.

About Auction.com: Established in 1990, Auction.com has pioneered modern real estate auctions. It has established a dominant position in its industry by selling more than $12 billion in real estate assets at auction since 2007. Additional services include residential loss mitigation and title agency and escrow/closing services. Primary clients are residential and commercial mortgage lenders, servicers and home builders. Auction.com’s success is based on the aggregation of real estate assets that are marketed and sold in large format auctions across the country and online. Auction.com is headquartered in Irvine, California and has offices in Dallas and New York. Visit Auction.com for more information.